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A council boss will help take charge at a controversial firm owned by local authorities for no additional pay but “plenty of headaches”. 

Paul Matthews will be appointed as an executive director of CCR Energy, or Cardiff Capital Region Energy, which is owned by the ten councils in the area and has been embroiled in controversy over a £5 million pay-out to a firm that lost out on a demolition contract. 

Mr Matthews is paid £131,000 as chief executive of Monmouthshire County Council. However, the full council has agreed he can take on the executive director role of the firm, which is owned by it and the nine other councils forming the Cardiff Capital Region. He said the role will involve working only a few hours “every other week”. 

When councillors considered whether to agree to the appointment, Mr Matthews answered questions from members who raised a number of concerns. 

He had volunteered to leave the chamber, in County Hall, Usk, but said: “There’s no pecuniary interest and no personal benefit to me. I’m sure there’s plenty of headaches to look forward to.” 

The councils set up CCR Energy as a limited company to buy and redevelop the former Aberthaw Power Station, on the Vale of Glamorgan coastline, as a “green energy park” including a tidal energy scheme, a solar park, on and off shore wind farms, battery storage, and a data centre under a £38.6m project.   

It purchased the former power station in 2022 and awarded the demolition contract in 2023 but Cardiff Council, which had run the procurement exercise, admitted liability after a rival firm challenged the process at the High Court and was awarded a £5.25m pay-out. 

Mr Matthews described Aberthaw as “the most significant brownfield opportunity anywhere in South Wales” and said the purchase is a land reclamation scheme with significant power capabilities. He said if the project works well, Monmouthshire is “one tenth of it” and the site has millions of tonnes of pulverised fuel ash which has a value. 

Conservative councillor Alistair Neill said he supported Mr Matthews “stabilising” the leadership of the company but said the procurement issue has now cost the taxpayer £6.5m. 

“That is an extraordinary amount and that is what is in the public domain, and I’ve not seen anything to address how we’ve reached that situation,” said Cllr Neill, who asked if the “sequence” was right. He also suggested the council should know more about the failure “before we put our chief executive in this position?” 

Mr Matthews acknowledged the “concerns around litigation”, and that a report is being prepared for the councils, but said “I don’t think that’s a reason to rule out and not get involved in something that could have advantages for the council.” 

Fellow Conservative Louise Brown said “it would be good to actually see a business case to know what the CCR Energy does” and was concerned about local authorities becoming involved in the energy sector, due to failed ventures in England, and the benefits to Monmouthshire. 

Mr Matthews said CCR Energy “has the potential to deliver significant value to Monmouthshire County Council if all goes well” and councillors were being asked whether they would allow “an officer to lend a hand”.  

Mr Matthews said the time commitment would likely be “a couple of hours on a Teams meeting every other week, or something of that nature.” 

The company is run by its management team and a board of directors, that can include up to six executive directors, of which Mr Matthews will be one, and up to five non-executive directors.